QBE Insurance Group Limited completed a $400 million catastrophe bond on Dec. 29, 2025, securing three years of collateralized reinsurance protection through its Bridge Street Re Ltd. program, with investor participation spanning multiple peak catastrophe perils.
The transaction involved the issuance of Series 2025-2 Class A Principal-at-Risk Variable Rate Notes, marking the second issuance under the Bridge Street Re structure. The bond provides $400 million of indemnity-based, per-occurrence protection covering US named storms, US earthquakes, Australian earthquakes and New Zealand earthquakes.
“This transaction enables QBE to leverage the growing ILS market to complement our traditional reinsurance placement and secure multi-year protection,” said Peter Burton, QBE Group chief underwriting officer. “By using such products, we develop new relationships to meet our overall risk transfer needs for peak peril exposures.”
The placement delivers fully collateralized capacity across several peak zones through a single transaction and runs for a three-year term. The issuance aligns with continued investor interest in indemnity catastrophe bonds that combine multi-peril and multi-region exposure within one structure.
“QBE Insurance Group is thrilled to complete its second issuance under the Bridge Street Re Catastrophe Bond program,” said Chris Killourhy, incoming QBE Group chief financial officer. “This highly successful issuance diversifies our capital providers and further enhances our capital management strategy.”
Killourhy was appointed group CFO in October and is responsible for overseeing QBE’s global financial strategy, capital management and investor relations.
Aon Securities LLC acted as sole structuring agent and sole bookrunner for the transaction. Legal counsel to QBE was provided by Willkie Farr & Gallagher LLP. The bond closed on Dec. 29, 2025.
Jordan Brown, managing director at Aon Securities LLC, said the transaction drew participation from the insurance-linked securities market and offered investors exposure to diversified commercial property risk.
“We are proud to have supported QBE on the recent indemnity cat bond issuance. We are pleased to see the ILS community participate in a novel transaction that provides investors with a globally diversified portfolio of well underwritten commercial property insurance risk. The ultimate execution is reflective of QBE’s reputation in the market as a leading commercial and specialty lines insurer, globally,” said Brown.
The issuance comes during a period of heightened scrutiny on insurers’ capital management approaches. QBE’s shares fell to a seven-month low in December after the company reported slower premium rate increases during the third quarter, according to market data and investor commentary published at the time. Gross written premiums rose 6% to $18.6 billion in the first nine months of the fiscal year, while QBE forecast a combined operating ratio of around 92.5% for fiscal 2026.
QBE Insurance Group Limited reported gross written premium of $22.4 billion for the year ended December 31, 2024. The Bridge Street Re transaction adds multi-year reinsurance capacity tied to peak catastrophe exposures through the insurance-linked securities market.
